A LINK reversal towards the $14 price level looks possible despite the 20% price bounce when chainlink suffered a strong correction as we reported in the Chain link news.
The asset dropped from the highs to a new low of around $14 after the flash crash and the subsequent selling pressure. LINK got pushed lower thanks to Dave Portnoy, the Barstool Sports founder who sold his stake in the cryptocurrency. The asset bounced after reaching the lows yesterday but a LINK reversal is possible with certain signs that consolidation is needed. LINK increased by 16% in the past day outpacing Bitcoin’s 1% loss.
Chainlink will likely soon drop to the $14 level as the ongoing bounce is losing momentum. A trader shared a chart showing that there’s an opportunity for the asset to reverse around 13% before bouncing back again to the range highs. While the analyst expects a retracement, some believe that LINK is forming a medium-term downtrend. Another analyst by the name “Steve” said that a pullback for Chainlink to $13 will soon arrive:
“This is a very unbiased & non-marine opinion on LINK. I have no business FUDing the project nor do I need to support it in a culty way. Facts are that we had a HUGE run-up and are now pulling back, which is good. I do see more blood coming though. Simple TA shows that we have no supports tested on the daily. Our first “bigger support” is around $8.50 (0.618 Fib Level). The minimum pull-back I am expecting is to $13.00 We also broke the daily trend for Chainlink.”
Also, another trader noted that LINK is forming a lower high and a lower low against Bitcoin suggesting that the asset is in a downtrend:
“This is the first lower low and potentially lower high that LINK has made in a long time… It will be interesting to see if LINK have the momentum to reclaim this level Fair play to @Pentosh1 on his short call. I’m not that brave and would rather buy dips in this market.”
The on-chain fundamentals for the coin remain strong despite the weakness in the price. Analysis from IntoTheblock says that chainlink is bullish with the network net growth and futures market momentum indicators that print bullish signs.
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